Strong, Reliable Mitigation of Co-employment Risks

P.A.C.E. Protects your business from these Co-employment Risks

  • The Risk of Unpaid Taxes, IRS Audits and Worker Reclassification
    The IRS aggressively audits companies and often reclassifies non-compliant independent contractors as employees of the company in order to recover back taxes, penalties and interest. Fear of an unfavorable tax audit is a primary reason why many companies want a third party to employ their non-compliant contract workers.

  • Insurance Claim Risks
    Companies face the risk that a contractor who is injured on the job will file a Workers Compensation claim against the company, or that an independent contractor who is out-of-work will file an Unemployment Insurance claim. Companies also run the risk of expensive insurance claims when an independent contractor has insufficient General Liability Insurance or insufficient Errors and Omissions Insurance.

  • The Risk of Class-action Lawsuits
    Perhaps the scariest risk factor is the specter of a class-action lawsuit brought by aggrieved contractors seeking compensation from your firm for benefits that they were unable to obtain on their own or through the traditional staffing vendor that employed them.

  • It All Adds Up
    All of these liabilities force prudent companies to implement positive strategies to evaluate the legal status of their independent contractors, and convert non-compliant independent contractors to W-2 status through a third-party employer of record. In this regard, P.A.C.E. offers the industry’s strongest defense against co-employment risk.

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